Energy & Basic Materials

Smith Group Asset Management

During the third quarter of 2018, the Energy and Basic Materials sectors posted relatively poor results. The Saratoga Energy & Basic Materials Portfolio was slightly positive for the quarter, in line with the broader sectors. The Portfolio benefited from favorable stock selection in Basic Materials, especially within Commodity Chemicals. Underweight positions in Oil & Gas Equipment and Metals & Mining also benefited the Portfolio. The Portfolio had an average 67% weight in Energy companies during the quarter. Relative to the sector, Integrated Oil & Gas continues to be the largest group underweight and Exploration & Production is the largest overweight. The Portfolio had an average 32% weight in Basic Materials companies during the quarter. Chemicals, the largest industry group in the Materials sector, was the best performing group on an absolute basis.

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Information contained herein was obtained from recognized statistical services and other sources believed to be reliable and we therefore cannot make any representation as to its completeness or accuracy. Any statements not of a factual nature constitute opinions which are subject to change without notice.